Ophir expects flat production, Capex figures in 2018

Image courtesy of Ophir Energy

London-based Ophir Energy, the developer of the Fortuna FLNG project in Equatorial Guinea, expects 2018 production levels to reach approximately 11,500 barrels of oil equivalent per day, similar to production rates of 2017.

The company said in its filing to the stock exchange that the 2017 production was at 11,700 boe/d.

Capital expenditure was at $104 million, well below the $160 million guidance, predominantly due to the deferral of the start of investment into the Fortuna FLNG project to 2018, according to Ophir.

Ophir previously said it expects to make a final investment decision on its Fortuna FLNG project in the first quarter of this year as it was still in financing discussions.

The company noted in the latest statement that funding talks for the project were continuing.

Capex for 2018 is expected to be approximately $150 million. Around 70 percent of this is expected to be spent on production and development with major areas of expenditure being Bualuang Phase IV ($30 million) and Fortuna ($65 million).

The company also said it was in discussions to farm-out certain exploration assets ahead of further exploration drilling.

Ophir expects underlying cash flow from production to be approximately $90 million at an average Brent oil price of $57 per bbl, which equals to $21 per boe on a unit basis.